- Bitcoin initiates a V-shaped recovery above $30,000, igniting a market-wide rebound.
- A great bull run may have started according to the 2W Chaikin Money Flow (CMF) indicator.
- A spike in on-chain transaction volume in loss hints at a sustainable run-up.
Bitcoin and the cryptocurrency market ticked up on Friday during the Asian hours after a week that left investors overwhelmed. The largest crypto reclaimed $30,000 at the time of writing and was ready to ease into a V-shaped recovery targeting higher levels toward $40,000.
BTC Begins Recovery Journey
The daily on-chain transaction volume in loss surged massively over the last couple of weeks. As shown by Santiment’s chart (below,) investors panicked following the Terra (LUNA) crash and offloaded their wallets. Besides, as reported on Thursday, the volume in loss ended on exchange platforms.
Nevertheless, spikes in daily on-chain transaction volume often come before a change of course. Hence, Bitcoin’s price was expected to make headway towards $40,000 in the coming days. In other words, fresh demand was anticipated following the massive dump from last weekend.
Bitcoin Daily On-chain Transaction Volume In Loss
Based on the four-hour chart, BTC had presented a buy signal, which emanated from the Moving Average Convergence Divergence (MACD) indicator. As the divergence created by the 12 Exponential Moving Average (EMA) widens, the odds will continue to favor the bulls.
The same timeframe showed the viability of a V-shaped recovery that may see Bitcoin’s price elevated to $39,500. But first, buyers must ensure that support above $30,000 is defended to give previously sidelined buyers an opportunity to jump onto the bandwagon.
BTC/USD Four-Hour Chart
According to AurelienOhayon, a renowned crypto technical analyst, the fourth great Bitcoin bull run has commenced. He reckoned via Twitter that “each time the 2W Chaikin Money Flow (CMF) reaches the -0.20 level, a Great Bull Run starts.” In the wake of the extended breakdown this week, Bitcoin’s price “has just reached this level since the second last candle, so it is confirmed.”
Reflecting Bitcoin’s bullish outlook is the In/Out of the Money Around Price (IOMAP) from IntoTheBlock (ITB). The push above $30,000 has drastically changed BTC, especially when it comes to critical support and resistance levels.
BTC IOMAP Chart
For now, the most robust buyer congestion zone runs from $27,841 to $28,785, where roughly 450,000 addresses previously purchased approximately 483,000 BTC. This means that the least resistance path would be upward in the coming days. In addition to that, the minor resistance zones as highlighted in the model imply that Bitcoin’s price has the potential to climb the ladder above $35,000.